Case study: eliminating a 5,000-unit MOQ on SudScrub through a 6-month demand forecast
The constraint
Every PO on this account came with a fixed 5,000-unit minimum. That number sat there regardless of what we actually needed.
It meant less flexibility on purchasing, more cash tied up in inventory sitting on shelves, and planning that had to work around the MOQ instead of around actual demand.
The trade we made
We went to the supplier with a different offer. Drop the fixed MOQ, and we'll give you a 6-month rolling demand forecast in exchange.
That's real visibility for them, not a one-time order guess. They could see what was coming, not just what we wanted right now.
Why that was enough
With 6 months of forecasted demand in hand, the supplier could plan production capacity properly. Order raw materials ahead of time. Set manufacturing schedules around real numbers instead of guessing between orders.
That planning confidence is what got the MOQ removed. Not a negotiation trick, just giving them what they needed to feel comfortable taking it off.
What changed
Purchasing is no longer locked to a 5,000-unit floor
Inventory holding costs are down, less excess stock sitting around
Cash flow improved, we order what we need, not what the MOQ demands
Production planning got better on their end too, and the partnership is stronger for it
A solid win for the SudScrub project, and one that came from giving the supplier something more valuable than a bigger order: a clear picture of what's coming.